Stock Market Highlights, Aug 8: Sensex sheds 581 pts; Nifty ends at 24,117; RBI maintains repo rates | News on Markets
Comment :: ‘Short-term relief seems unlikely’
Markets struggled to maintain Wednesday’s recovery, ending over half a percent lower due to weak global cues. After an initial dip, the Nifty showed volatile movements, ultimately closing near the day’s low at 24,117. Sectors like IT, metals, and energy were the hardest hit. However, the broader indices outperformed slightly, posting only minor losses.
The ongoing global uncertainty is making market participants cautious, and short-term relief seems unlikely. The Nifty is encountering resistance around the 24,350 mark, and a decisive break below 23,900 could lead to a further decline. Traders are advised to adjust their positions with a hedged strategy to navigate the current volatility.
Views by: Ajit Mishra – SVP, Research, Religare Broking
Comment :: ‘Global market is focusing on US job data’
The domestic market reversed its earlier gains as the RBI’s decision to hold its current policy with a caution to revise upward the CPI and moderate the growth forecast for Q1. Meanwhile the global market is focusing on US job data and the probability for deeper slowdown has raised concerns that the US economy is heading for a recession, forcing the federal reserve to cut rates faster than initially expected.
Views by: Vinod Nair, Head of Research, Geojit Financial Services.
Expert Speaks :: ‘A rate cut seems unlikely in the near term’
– The RBI MPC voted 4-2 to keep policy repo rate unchanged at 6.5 per cent on Aug 8, maintaining status quo for the ninth time, in line with most street expectations. The current pause is the second-longest in the past 25 years. Although headline inflation has moderated from its peak, food price momentum remains elevated and likely to result in a shallower softening of CP| headline inflation. The MPC also decided by a majority of 4 out of 6 members to maintain its ‘Withdrawal of Accommodation’ stance.
– The GDP forecast for Q1FY25 was revised from 7.3 per cent to 7.1 per cent (due to lower than anticipated corporate profitability, general government expenditure and core industries output) while maintaining FY25 forecast of 7.2 per cent. Inflation forecast for Q2 and Q3FY25 were adjusted upwards by 60 and 10 bps to 4.4 per cent ano 4.7 per cent while lowering Q4 forecast 20 bps to 4.3 per cent.
– Growth in India has remained resilient; inflation has been trending downward and there has been progress in achieving price stability. The RBI flagged challenges to the global growth outlook over the medium term. RBI remains vigilant to ensure that inflation moves sustainably towards the target, which could take some time. Consequently, a rate cut seems unlikely in the near term.
View By: Mr Dhiraj Relli, MD and CEO at HDFC Securities
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